St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-07-29
A BIG RISE IN TOBACCO.
Caused by Short Crops, and Spec
ulative Manipulation.

New YORK, July 2S.-The following
is published here: There is such eX-
element among tobacco dealers and
manufacturers at the present time as
has not been known for years, and
prices for leaf tobacco have. increased
from so to 100 per cent. during July land
the end is not yet. The manufacturers
have been sending up their prices in
response to the demands made upon
them by the controllers of the leaf
supply. In plug tobacco alone the LOr-
lizards have advanceds their wholesale
price cents per pound during the past
three weeks. Other manufacturers
have kept pace with them, and Western
manufacturers, who initiated the rivalry
of low prices few years back. have not
been able to keep out of the present
movement. The causes of the increase
are complex. but the chief immediate
cause is speculative enterprise. Last
year the tobacco crop was good aver
age, but prices were so low that many
growers, in disgust, made up
their minds to try this year
some kind of farming that
would pay lbetter. Consequently
upon this determination small crop
only was planted. This fact alone would
have been cause for an advance beyond
the prices obtained last season, and on
this manufacturers as well as farmers
and dealers calculated, but when to the
restriction of the tillage is added the
leSsening of the product which the long
continued drouth in the tobacco region
must inevitably entail, it is clear that
the supply must bear relation to the
demand that is antagOniStic to the con-
SumerS' interest. Spectators were not
slow to perceive the indications
of coming drOuth, and they quietly
bought in all of the leaf
tobacco they could get their hands on
and held it for raise. This started at
the end of June and is still going on.
In the best sought grades the advance
has been some 40 per cent. and i'll some
cases it has touched the doubling point.
There is undoubtedly enough tobacco
stored from last harvest to carry the
workers through till the next yield, so
there would be no heightening of rates
but for the certain shortage in the new
crop. 1t is said that the great and rapid
rise in prices is solely the work of spec
ulatOrS who are not manufacturers.
The latter, it is claimed, could not af-
ford to buy largely beyond immediate
requirements because the alert
leaf market would apprehend that
they were working on speculating
lines and would promptly put up prices
themselves. Mr.. Lyall. of the firm of
Buchanan Il Lyall, said this after
noon: Tobacco which sold for and
10 cents three months ago is now worth
from 90 to % cents a pound. This rise
is due to the increased demand, and
this is traceable to the fact that the crop
planted this year is not more than 80 per
cent. of last years. Then the drouth
we have had will reduce the yield to
much lower point than the diminished
tillage would represent. The crop this
year will certainly be small, but what
its amount will be will not be made
known with certainty till some three
weeks hence" E. q. GriSwOld, agent
for Lorillard & Co.. said that the prices
of leaf tobacco had advanced so to 100
per cent. in month.